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TWO INGREDIENTS TO ESTABLISH STATUTORY FLAVOUR CONTRACT

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However, it should not be mistaken that once a company, corporation or government agency is set up by statute, all the employees thereof ipso facto became children of statute to the extent that their individual agreement of service with the employer automatically becomes contract with statutory flavour. Two of the vital ingredients that must coexist before a contract of employment may be said to import statutory flavour includes the following:- 1. The employer must be a body set up by statute. 2. The stabilizing statute must make express provision regulating the employment of the staff of the category of the employee concerned especially in matters of discipline. See in this regard Idoniboye-Obu v NNPC (2003) FWLR (Pt.146) 959 at 992; Salami v New Nigerian Newspaper Ltd (1999) 13 NWLR (Pt. 634) pg 315; CBN v Archibong (2001) FWLR (Pt.58) 1032 at 1056; Udemah v Nigerian Civil Corporation (1991) 13 NWLR (Pt.180) 477; Fakuade v O.A.U Complex Management Board (1993) 5 NWLR (Pt.291) 47.

— M.U. Peter-Odili, JSC. Kwara Judicial Commission v Tolani (2019) – SC.63/2010

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EMPLOYMENT: THERE WILL BE AN ACTION FOR REINSTATEMENT WHERE THERE IS UNILATERAL REPUDIATION

In Vitarelli v. Seaton 359 US. 335, the Supreme Court of the United States of America granted a declaration in the case of a civil servant even in a case involving State Security, because the proper procedure was not adopted. An analysis of the decided cases leads to the conclusions that an action for reinstatement is only possible where there is a unilateral repudiation of the contract of service by the Master (the Employer) which has not been accepted by the (employee) Servant. See Denmark Productions Ltd. v. Bascobol Productions Ltd. (1961) 3 All E.R. 583. In that situation the contract is still in existence having not been discharged by the acceptance of the repudiation. It is therefore not the same as where the contract has been discharged and the dismissed employee is entitled only to damages.

— A.G. Karibe-Whyte, JSC. Olaniyan & Ors. v. University of Lagos (1985) – SC.53/1985

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EMPLOYMENT OF STATUTORY FLAVOUR – CREATION OF STATUTE

It is settled law that the character of an appointment is determined by the legal character of the contract of employment. Where the contract of appointment is determinable by the agreement of the parties, there is no question of the contract having a statutory flavour. It is immaterial that the other contracting party is a creation of a statute.

– Muhammad JCA. Osumah v. EBS (2004)

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AN EMPLOYMENT WHERE NATURAL JUSTICE IS BEEN EXCLUDED IS PURE MASTER AND SERVANT

Lord Wilberforce in the case of Malloch v Aberdeen Corporation (1971) 2 All ER 1278 at 1294 said: “One may accept that if there are relationships in which all the requirements of the observance of rules of natural justice are excluded (and I do not wish to assume that this is inevitably so), these must be confined to what has been called “pure master and servant” case, which I take to mean cases in which there is no element of public employment.or service, no support by statute, nothing in the nature of an office or a status which is capable of protection. If any of these elements exist, then in my opinion, whatever the terminology used, and even though in some interpartes aspect the relationship may be called that of master and servant, there may be essential procedural requirements to be observed and failure to observe them may result in a dismissal being declared to be void.”

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TERMINATION OF SERVICE – MASTER & SERVANT

The law regarding master and servant is not in doubt. There is also no doubt that the contract of master and servant is subject to both statutory and common law rules. By and large, the master can terminate the contract with his servant at any time and for any reason or for no reason at all. But if he does so in a manner not warranted by the particular contract under review, he must pay damages for breach.

— A. Oputa, JSC. Olaniyan & Ors. v. University of Lagos (1985) – SC.53/1985

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EMPLOYMENT OF STATUTORY FLAVOUR CAN BE DETERMINED BY THE STATUTE ONLY

NEPA v. Ango it was held as follows:- “An employee of an employer with statutory flavour has no right to terminate his appointment at will because the employee does not hold the appointment at the pleasure of such an employer. To determine the appointment, the employer has a duty to comply with the conditions precedent laid down in the conditions of appointment failing which such termination will be held to be ineffectual and void.”

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NOT ALL EMPLOYMENT BY STATUTORY BODY HAS STATUTORY FLAVOUR

The fact that an organisation or authority which is an employer is a statutory body does not mean that the conditions of service of its employees must be of a special character, ruling out the incidence of a mere master and servant relationship. Where the contract between the parties is clear and unequivocal, the court must, in construing the relationship of the parties, confine itself to the terms and contract of service between the parties.

– Muhammad JCA. Osumah v. EBS (2004)

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